13 April 2015
Dr.
Raghuram G. Rajan
Governor
Reserve
Bank of India
Central
Office
Mumbai
1
Respected
Sir
Request to Ensure to Safeguard and
Protect the Interests of Retirees
As a result of the
ceaseless efforts of the organizations of serving employees and the retirees of
the Bank and the positive and sympathetic attitude of the successive Governors,
Reserve Bankemployees and officers could achieve the present pension scheme,
the family pension for the widows of the deceased employees and retirees and post-retirement
medical facilities by way of MAF Scheme. We are particularly grateful to the
Bank for the improvements made from time to time in family pension, rate of DR
neutralization and Annual Medical Check- up Allowance. However certain issues,
particularly, periodical updation of pension, relief to pre-1986 retirees,
opening of pension option as also much needed further improvements in the
Medical Assistance Fund Scheme are still outstanding and causing extreme
concern. In this connection, we submit below the following for your kind and
sympathetic consideration:
Pension
Updation: Superannuation Fund of the Bank,being
built up to take care of the monthly payment of pension amounts as also of
periodical improvements therein, has now almost touched Rs. 10,000 crores. The
uncalled for and unnatural bulge in the amount is mainly due to the fact that
the promised and projected improvements in the pension by way of periodic
updation thereof on the lines of updation of pension of Central Government
retirees has not taken place in the Bank for more than a decade. Updation of
pension is a regular feature in the Central Government coinciding with the
implementation of every Central Pay Commission Report. We have no doubt that
the updation procedure will also continue at the time of the implementation of
the ensuingReport of Central Pay Commission.We may state that Reserve Bank
Pension Scheme is exactly on the lines of Central Government Pension Scheme,
and as such, Reserve Bank is committed to update the pension of its retirees.,
At the time of introduction of the Scheme, and soon thereafter the employees
were lured to join it in early 1990s, by specifically promising them periodical
updation of pension. This was done by issuance of a circular in 1992, and more
importantly, by assurance across the table by the thenHon’ble Governor, Late
Shri R.N. Malhotra. Because of these assurances, mainly, employees opted for
the scheme by fulfilling all the stringent conditions, including DR revision
every six months, instead of every quarter and surrendering 10% Bank’s
contribution to PF which was only 8.33% in the case of all other public
sector
undertakings, including banks and Central Government. (The surrendered Bank’s
contribution to PF forms part of its Superannuation Fund.) In fact updation of
pension was granted after first three wage revisions subsequent to introduction
of Pension Scheme in the Bank, viz., 1987, 1992 and 1997.
Bank’s
Administrative Circular dated 1 September 2003updating the pension of
pre-November 1997 retirees, as is mentioned, ’…by way ofrevising the component
of “Pay” to thoseobtaining in the revised pay scales brought into effect from 1st
November 1997…’ explains the justification and rationale for
periodicalupdation. The then illustrious Governor: Dr. BimalJalan issued the
circular in spite of the objections of the Ministry of Finance. He had taken
the precaution of getting legal opinion of two independent Senior Supreme Court
advocates who unequivocally opined that the Board has the full authority to do
so.
It may kindly be
appreciated that non-utilization of the Superannuation Fund for updating the
pensionafter revisions of pay as on 1st November 2002 and 2007 is
unfortunate. The Bank’s efforts to withdraw the updation to pre-1st
November 1997 pensioners under pressure from the Ministry, have not been taken
kindly by the Bombay High Court which has granted a stay. Even MoF petition to
expedite the hearing has not been accepted.Contrary to earlier decision of the
Bank to seek approval of MoFfor amendments to RBI Pension Regulations, vide its
letter dated 11 October 2011, stated to be to enable it to update pension
smacks of deliberate attempt by those handling the issue at that time to deny
pension updation under the garb that the issue is with the Government.
Sir, the Bank’s
inaction in this regard is affecting the retirees very adversely most of whom
are not likely to live to benefit of more than one updation in their
post-retirement life.
Relief to
Pre-1986 Retirees: The number of the living unfortunates
in this category, who could not get the benefit of the pension scheme,and have
been relegated almost to BPL level, has come down to two digits. Each one of
the living unfortunate is over 90 years of age. Earlier Governors were kind
enough to grant ex-gratia and Medical Allowance and improvements therein from
time to time. The category appears to have been a forgotten lot now, waiting
only for departure from this world. No organization representing them can
afford to accept this situation any more.
Opening of
Pension Option:We are being told that opening of
pension option will come along with updation of pension. There cannot be a more
fallacious argument than this. There is absolutely no connection between
updation of pension and opening of the option. The specious but illogical
argument extended by the authorities while denying updation that there would be
repercussions in Banking Industry, if updation is granted to us, also does not
hold good for opening of option, as option has been granted to employees and
retirees in the banking industry as early as in their 2007 settlement. It is
obvious that the Bank is awaiting MoF nod for the opening of option. In this
regard we may point out that the Bank has in the past, in 1990s, had opened the
option more than once, without referring the matter to the Ministry. As against
lakhs of employees in the Industry who exercised the option after 2007 pay
settlements, the employees and the retirees in the Reserve Bank who are now
waiting for the opening of option does not exceed even 2500.
Medical
Facilities for Retirees:As a result of our
pursuing the issue of improvements in the medical facilities to the retirees
under the MAF Scheme, and the positive attitude of the section dealing with the
subject in HRMD, the rates prescribed for hospitalization and Annual Medical
Check-up have been raised to certain extent in the recent past, for which we
are thankful to the Bank. However we wish to point out that the Scheme was
introduced by the Bank with specific
assurance given then to the Associations/Federation that the retirees would
continue to enjoy same facilities which
the employee/officer in his/her grade at the time of retirement is eligible to
benefit. The promise has not been honoured. Further, the honourable Governor
Dr. Jalan introduced Mediclaim arrangement mainly to extend cashless
hospitalization facility to them. However, this facility has now remained only
on paper. All these are fallen promises now. For long we are requesting for a
meeting at the highest level to present our submissions in this regard.
Sir,
the retirees are going through extreme mental agony, humiliation and
frustration at total neglect of their issues. For years at every Central Board
meeting being held anywhere in the country, hundreds of retirees assemble and
silently bring to you and the Central Board members’ notice their anxiety in
the matter. You are kind enough to meet them and assure them of your concern in
this regard. However, your efforts unfortunately have not yielded results.
Certainly there is a limit to all this, you will please appreciate.
Under the
circumstances, we are of the view that if due to certain reasons it may not
have been possible for youto grant updation immediately, the retirees could be
granted monetary relief in other form. We may add that the medical expenses of
the retirees in the advancing age are mounting and have become unbearable, when
the superannuation funds are mostly lying unutilized.
We, therefore, stress
that the existing service conditions of the RBItes are being granted due to the
Goodness and vested with the unquestionable powers of the successive Governors
and these benefits are never withdrawn and that too unilaterally as it happened
in regard to pension updation.
We also earnestly request
to spare a few minutes from your busy schedule to kindly hear our further
submissions in this regard.
We may add that
retirees have decided not to digest the uncalled for insults in the forms of
delays and denials of their justified demands any further, and unless the
matters are sorted out mutually,we have taken a firm decision to come on the
streets and ventilate our unhappiness over all this, whatever be the
consequences.Kindly ensure that the retirees, all of them senior and super
senior citizens, should not be pushed to this stage to show their resentment in
this regard in this manner.
Awaiting your kind,
sympathetic and positive response,
Yours faithfully,
(T.
G. Nair)
General Secretary Courtesy:R B Kishore
